Policy Research Group and BMG recently published research on Digital Capabilities in small and medium sized businesses (SMEs). The digital economy is increasingly important to the UK; that means that all UK businesses, particularly small ones, should be able to confidently use technology, and trade online in the modern interconnected world. But a lot of small businesses are not making the most of the opportunities that are open to them, and the country risks falling behind in the global marketplace.

The research found that a quarter of SMEs do not possess basic digital skills; and there is a clear, positive link between digital skill levels and growth in sales. Not only do many lack the skills, however, but there is an attitudinal barrier amongst a large minority of SMEs towards developing an online presence; a lack of awareness about the benefits and opportunities available; and a lack of understanding about online security threats.

The rollout of superfast broadband is helping things, as long as small businesses get the training ad skills they need to get the most out of it. That means delivering courses locally through existing networks, and finding out what works well – to date, there has been a lot of activity in developing digital skills but very little evaluation of the impacts in business, or which delivery methods work best.